Kerala: Act to be amended to waive off farm loans up to 2 lakh

TNN | Updated: Jul 4, 2019, 12:38 IST

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THIRUVANANTHAPURAM: The state cabinet on Wednesday decided to amend the Kerala State Farmers Debt Relief Commission Act, 2006' to include farm loans up to Rs 2 lakh under the purview of the debt relief commission. The state cabinet mooted the suggestion first in March but the decision to amend the Act had got delayed. While answering to a notice for adjournment motion in the assembly on June 10, agriculture minister V S Sunilkumar had said the proceedings to extend farm loan waiver limit to Rs 2 lakh were in the final stages. The amendment will be made on sub-section III of Section V of the Act to increase the limit for arrears from Rs 1 lakh to Rs 2 lakh. Once the amendment is notified through an ordinance, the district debt relief commissions will begin to accept applications to write off loans for higher amounts. Recently, the government had placed the recommendation before the state level bankers' committee (SLBC) and got clearance for the same. The SLBC also consented to include loans availed from scheduled banks and public-sector banks also under the purview of the debt relief commission. Currently, only loans availed from cooperative banks come under the purview of debt relief commission. Currently, district debt relief commissions are perusing applications for farm loan waivers up to Rs 1 lakh availed till August 31, 2018 by farmers in Wayanad and Idukki and loans availed till March 31, 2014 by farmers in other districts.

The state cabinet also decided to appoint Sanjay Kaul as ports department secretary. He will hold the additional charge of the MD of Kerala State Industrial Development Corporation. V R Premkumar, who is joining the service after leave, will be the new director of social justice department. He will hold the additional charge of deputy secretary, planning and economic affairs department. Service of G Prakash, standing counsel of state in the Supreme Court, will be extended to three more years from July 1.